By Michel Ardolino
In last month’s column, I wrote about how the real estate market has its ups and downs. A few current trends illustrate just how true this is.
While mortgage rates fell half a percent the week ending July 7, they edged up the following week to 5.51% for a 30-year fixed mortgage.
Keep in mind that the rates we’ve been watching are still historically low, even though experts expect the Federal Reserve to raise rates by ¾ of a percentage point at its next meeting.
Some financial experts think we’re headed for a recession, and you might be wondering what happens to interest rates in that scenario. Due to fewer people taking out loans, banks may offer interest rate programs to entice people. Currently, interest rates are still very low and can be locked in.
After an extensive seller’s market, there is still not enough inventory to meet demand. Keep an eye on mortgage rates, though. Some may decide not to buy or sell, thinking they will get a better deal in the meantime. This may not be the best decision for buyers or sellers and may also lead to increased inventory.
Experts now predict the increase will be over 9% by the end of 2022, which means more competition. This increase will not happen instantly; it will take time. Get that listing for sale before your neighbor does.
Foreclosures can also play a role in increasing inventory. The COVID-19 Eviction and Foreclosures Act of 2020 declared a moratorium until January 15, 2022.
While experts are seeing a steady increase in foreclosures across the country, the ATTOM US Foreclosures Market Report shows foreclosures in New York are 13.3% lower than the same period in 2020. This is a trend to watch because the more homes foreclosed, the more properties are available to buyers.
Another factor is that federal law helped slow foreclosures at a time when homes were appreciating. For some who were on the verge of defaulting on their mortgages before the moratorium, they can now sell their homes for more money and pay off what they owed.
To address the appreciation, according to a One Key MLS report, median selling prices in Suffolk County showed an increase of nearly 11% from June 2021 to June 2022.
Here’s more good news for Suffolk County. In recent months, the majority of homes were still selling in less than a month and about 23% faster than the same period last year.
It’s all about price. When you speak to a real estate professional, they should discuss current market factors, as well as the details of your home, and help you price it accordingly. Plus, proper pricing will allow you to sell your home within your timeline and price expectations.
There are many moving parts regarding how a person will do when selling or buying a home. Consider buying your first home, downsizing, moving to a bigger location or another state before the end of the year, now is the time to discuss your plans with a real estate professional . So… let’s talk about it.
Michael Ardolino is the founder/owner-broker of Realty Connect USA.